Understanding Offer in Compromise (OIC)
Offer in Compromise (OIC) is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the total amount that they owe. OIC is a great option for taxpayers who are unable to pay their back taxes in full and want to avoid collection actions, such as wage garnishments and tax liens. With OIC, taxpayers can make a lump sum payment or a series of payments over time to settle their tax debt.
Eligibility Criteria for OIC
Not all taxpayers are eligible for OIC. The IRS considers several eligibility criteria before accepting an OIC: Complement your reading with this carefully selected external content. Inside, you’ll discover worthwhile viewpoints and fresh angles on the topic. how to settle credit card debt, enhance your learning experience!
It is essential to note that even if a taxpayer meets these criteria, the IRS may still reject their OIC if the IRS believes the taxpayer can pay their tax debt in full.
Preparing and Submitting an OIC
Submitting an OIC requires completing IRS Form 656, Offer in Compromise. The form requires detailed financial information that must be …